Snively v. Commissioner
United States Tax Court
Petitioner owned approximately 94 per cent of the preferred stock of Lake Eloise Groves, Inc., which operated citrus groves in and near Winter Haven, Florida. The corporation experienced financial difficulties and, in 1943, its assets were sold at a loss to a family trust. The petitioner's son was the trustee and petitioner's other children and grandchildren were the beneficiaries.
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Petitioner owned approximately 94 per cent of the preferred stock of Lake Eloise Groves, Inc., which operated citrus groves in and near Winter Haven, Florida. The corporation experienced financial difficulties and, in 1943, its assets were sold at a loss to a family trust. The petitioner's son was the trustee and petitioner's other children and grandchildren were the beneficiaries. The respondent disallowed the loss on the ground that it was barred by section 24 (b) of the Code. He determined deficiencies and a penalty against the corporation and asserted them against petitioner as a…
1Opinion of the Court
OPINION.
Rice, Judge:
The respondent argues that under the provisions of section 24 (b)1 of the Code, Lake Eloise may not deduct a loss on account of the sale of its assets to the Snively Trust because it arose from a sale between a corporation and an individual, or group of individuals, who were indirect owners of more than 50 per cent in value of Lake Eloise’s stock. Section 24(b) (1) (B). Or, in the alternative, the loss in not deductible because it arose from a sale between members of a family. Section 24 (b) (1) (A).
The respondent’s argument with respect to this first issue is that the…
2Cases cited9 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- McWilliams v. CommissionerSupreme Court of the United States · 1947
- Coast Carton Co. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1945
- Norie v. CommissionerUnited States Tax Court · 1944
- Whetstone v. Coslick, Et Vir.Supreme Court of Florida · 1934
4 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- Widener, Trust No. 5 v. CommissionerUnited States Tax Court · 1983
- Estate of Fink v. United StatesDistrict Court, E.D. Michigan · 1986
- De Haven v. FahsDistrict Court, S.D. Florida · 1959
- Estate of Pechan v. CommissionerUnited States Tax Court · 1985
- Guardianship of Fink v. CommissionerUnited States Tax Court · 1984
2 more not listed; retrieve them via the Exa API.